In the highest digital asset currency seizure ever, the Enforcement Directorate (ED) froze Rs 370 crore from the crypto exchange on Thursday. The development comes at a time there are said to be 10 crypto exchanges under the lens of the ED, for their alleged involvement in money laundering of 100s of crores of rupees. The crypto exchanges allegedly came to light after raids at Directors of Zanmai Lab Pvt Ltd, which owns the popular crypto exchange, WazirX.
WazirX and cases over cryptocurrency
A day before the raids of the central agency, Minister of State for Finance Pankaj Chaudhary had apprised the Rajya Sabha that the agency was investigating two cases related to crypto-currency against WazirX.
Choudhary said, “In one of the cases, investigation done so far has revealed that one Indian Crypto-exchange platform, Wazirx, operated by Zanmai Labs Private Limited in India was using the walled infrastructure of Cayman Island-based exchange BINANCE. Further, it has been found that all crypto transactions between these two exchanges were not even being recorded on the blockchains and were thus cloaked in mystery.”
According to the Union Minister, a Show Cause Notice (SCN) has been issued under the provisions of FEMA against WazirX for allowing outward remittance of crypto assets worth Rs 2,790 crore to unknown wallets.
Further, in another case, it is noticed that Indian exchanges namely WazirX has allowed the foreign users’ request to convert one crypto into another on its own platform as well as by using transfer from third-party exchanges namely FTX, BINANCE, etc.
(With inputs from PTI)